Loan interest rates decrease, businesses still have difficulty accessing capital

Interest rates decrease, more resources to expand production scale

The Prime Minister and the State Bank have continuously requested banks to reduce input costs to reduce lending interest rates. In response to this request, since the beginning of March 2025, 23 banks have reduced their deposit interest rates. The average lending interest rates of banks have also decreased and ranged from 5.5% - 21%/year. At Techcombank, lending interest rates range from 6-12.9%/year; Vietcombank from 5.5-14.4%/year; Vietinbank from 6-9.6%/year; Agribank 6.5-17%/year; VIB 7.8-18%/year; Sacombank 7.49-18%/year, OCB 5.99%-21%/year, etc.

The reduction in interest rates by banks will have a positive impact on businesses, most obviously the reduction in interest rates helps businesses reduce borrowing costs. For businesses that need to borrow capital to expand operations or maintain production, the reduction in interest rates means that their financial costs will be significantly reduced. When borrowing costs are lower, businesses can spend more budget on other important activities such as product research and development, technology upgrades or market expansion. This is especially important for small and medium enterprises, a group of businesses that often have difficulty accessing capital at preferential interest rates.

Experts say that businesses will benefit from lower interest rates as they improve cash flow. For businesses that already have loans, interest payments will be reduced, giving them more financial resources to focus on long-term business strategies. This increases liquidity and the ability to maintain operations in a volatile market. In addition, industries such as real estate, construction and industrial production often benefit the most from lower interest rates because these are areas that require large amounts of capital to maintain and develop.

Speaking to reporters, Mr. Duc Hung, director of a paint manufacturing company in Hanoi, said that lower interest rates help his company reinvest. “When capital costs are cheaper, we have more resources to expand production scale, invest in new machinery and technology to improve labor productivity. This can lead to an increase in total output in the economy, create more jobs and contribute to promoting economic growth. For businesses that need capital to expand or maintain operations like my company, this is a good opportunity to access cheaper capital, reduce financial costs and invest in development,” Mr. Hung said.

Unsecured loan interest rates are 3 times higher than mortgage interest rates

Although interest rates have decreased, many businesses are still not able to access cheap capital. According to the reporter's actual research, unsecured loan interest rates are still high. Specifically, at Techcombank, mortgage interest rates are only 6-9.5%/year but unsecured loan interest rates are up to 12.9%/year; Vietcombank mortgage interest rates are 5.5%/year but unsecured loan interest rates are 14.4%/year. Similar to Agribank, VIB, Sacombank, mortgage interest rates only fluctuate from 6.5%-7.8%/year but unsecured loan interest rates are up to 17%-18%/year. Even at OCB bank, mortgage interest rates are 5.99%/year but unsecured loan interest rates are up to 21%/year. Thus, unsecured loan interest rates are currently 3 times higher than mortgage interest rates.

Mr. Hung said that although the interest rate has dropped to 6.5%, businesses still have difficulty accessing capital. To borrow at low interest rates, businesses must have collateral. Currently, banks only prioritize loan packages with collateral. Many businesses lack collateral, so they have difficulty borrowing capital.

Sharing the same view, Mr. Mai Ngoc Vuong, Director of Linh Anh Production and Trading Company Limited, said that due to the need to expand production and business, he went to the bank to borrow capital, but the bank required collateral in order for him to borrow cheap capital. "My family's assets have all been mortgaged for loans before, now I want to borrow more, but the bank requires collateral, so my company cannot borrow. I hope the bank has more preferential interest rate packages so that businesses can easily access capital sources," Mr. Vuong shared.

According to the representative of the State Bank, this agency has had many solutions such as reducing interest rates to help businesses access capital. However, lending to small and medium enterprises is often risky and prone to capital loss. Therefore, lending on credit or mortgage is under the discretion of commercial banks, the State Bank does not intervene. Businesses that want to borrow on credit have no other choice but to gain the trust of the bank.

At the recent conference "Promoting bank credit, contributing to promoting economic growth in the 14th region", Governor of the State Bank of Vietnam Nguyen Thi Hong affirmed that the banking industry really wants to reduce interest rates. However, the State Bank of Vietnam is the agency that manages and operates monetary policy, so adjusting the interest rate level needs to be considered comprehensively based on macroeconomic indicators. However, the State Bank also directed credit institutions to increase cost reduction, apply technology, and promote digital transformation to reduce interest rates for businesses and people.

Source: https://vov.vn/kinh-te/lai-suat-cho-vay-giam-doanh-nghiep-van-kho-tiep-can-von-post1163833.vov